Your Right to Know

About 210,000 private and public employers are in line for $1 billion in rebates this summer on
their workers’ compensation premiums as part of a wide-ranging plan released yesterday.

The $1.9 billion plan also would funnel more money toward worker-safety programs and modernize
the state’s Bureau of Workers’ Compensation financial operations.

Individual employer rebates would range in size from $5 to several million dollars, Gov. John
Kasich said.

“It is one of the most-significant economic-stimulus efforts you will see,” Kasich said in
making the announcement at the Homage vintage T-shirt store in the Short North.

The proposal received praise from political and business leaders and groups across the state,
including one group of 270,000 employers that won an $860 million judgment against the bureau after
it sued, accusing the state of overcharging employers from 2001 to 2009.

Earl Stein, president of Pay Us Back Ohio BWC, which sued the state, said in a statement that he
was pleased to see that the state recognizes “the bureau’s $9 billion surplus belongs to job
creators — not the BWC. Now is the time for the administration and the bureau to recognize that it
continues to hold on to another $860 million that was illegally charged to 270,000 employers and
comply with the court order to repay those funds.”

Suzanne Beachy, an owner of Timothy A. Beachy & Associates construction company in Columbus
and part of the Pay Us Back group, said the timing on Kasich’s announcement seemed odd given what’s
happened with the lawsuit.

“It does seem a little fishy, doesn’t it, like he’s trying to appease everybody,” said Beachy,
who has been told that she was overcharged $8,000 in premiums during the eight-year period.

Kasich said there was no connection between the lawsuit and yesterday’s announcement.

“When you have this cash, you want to get it back to the people,” he said.

Kasich said money has been set aside for that judgment, and that the bureau will continue to
fight it.

Homage owner Ryan Vesler said under the proposal unveiled by the governor, he will get a $4,000
rebate, which he wants to put toward hiring staff, technology expenses and other costs.

“We have a lot of needs,” he said after the news conference. “I’m excited. It’s something to
help small businesses grow.”

The bureau’s board is scheduled to vote on the rebates this month. If approved, businesses would
receive the money over the summer.

The bureau is able to afford the rebates because of investment strategies that have generated
more money than expected.

Companies and government employers that pay premiums into the state fund for injured workers and
have up-to-date policies are eligible for a rebate of 56 percent of what they were billed for their
last policy year.

In addition to the rebates, the bureau wants to require employers to pay premiums upfront
instead of after a coverage period.

The move would give employers more-flexible payment options and reduce costs from employers who
don’t pay premiums on time.

This switch requires legislative approval, which the bureau hopes to gain this year. The switch
would not go into effect until 2014 at the earliest.

The bureau wants to give employers a credit equal to their previous six months’ premium as part
of the transition to a new payment system. The credit would be equal to $900 million.

The switch would lead to rate reductions of 2 percent for private employers and 4 percent for
public employers.

The bureau also wants to triple the bureau’s worker-safety and wellness programs from $5 million
to $15 million.The bureau covers government agencies and most small- and medium-sized businesses in
the state.